Understand your credit score and its impact on your financial future
A credit score is a 3-digit number (300-900) that represents your creditworthiness. It's calculated by credit rating agencies like CIBIL, Experian, Equifax, and CRIF High Mark based on your credit history and financial behavior.
Higher scores indicate lower credit risk and make you more attractive to lenders, resulting in better loan terms and interest rates.
300-549 - Poor
Very high risk, difficult to get loans/cards
550-649 - Fair
High risk, higher interest rates, limited options
650-749 - Good
Moderate risk, approved but with conditions
750-849 - Very Good
Low risk, better rates and easier approval
850-900 - Excellent
Minimal risk, best rates and instant approval
On-time payment is most important
Late or missed payments significantly lower your score
Keep usage below 30% of limit
Higher usage indicates financial stress
Mix of secured & unsecured credit
Diverse credit types show better management
Older credit history is better
Keep old accounts open, longer history = higher score
Too many inquiries lower score
Each application triggers hard inquiry
Score 750+
₹15 lakhs at 8-9% interest
Score 650
₹10 lakhs at 11-12% interest
Score 750+
₹5 lakhs limit, instant approval
Score 650
₹1-2 lakhs limit, longer process
Score 750+
Full amount at 6.5% interest
Score 650
70% amount at 8-9% interest
Score 750+
90% value at 7% interest
Score 650
60% value at 10% interest